Perceptual mapping entails developing schematic representations that reflect how products or services compare to those of the competitors on dimensions most important to success in the industry” (David and David, 2017). The perceptual map based on price and quality as well as nutrition could be helpful to Hershey. This mapping technique can assist Hershey in identifying its position compared to the company’s competitors. A key element for the future success of Hershey is a strong marketing strategy and product positioning.
Production positioning is defined as the act of designing the image of the firm’s offering so that target customers understand and appreciate what the product stands for with its competitors (Kohli and Leuthesser, 1993). Hershey having an understanding of their price, quality, and nutritional position will allow the company to make better evaluations of product undertakings. Analyzing the map, you can see where Hershey compares to its competitors. The result of this map can also be used to increase the quality of the product.
References:
David, F. R. & David, F. R. (2017). Strategic management (16th ed.). Pearson.
Kohli, C. S., & Leuthesser, L. (1993). Product positioning: A comparison of perceptual mapping techniques. The Journal of Product and Brand Management, 2(4), 10.
Price/Quality
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Hershey’s
Company Perceptual Map
Student’s Name
Institution
Hershey’s Company Perceptual Map
In the recent past, firms in confectionary industry have committed themselves to producing healthy candy in order to satisfy clean snacking buyers. Hershey is, for instance, committed to transparency, responsible raw material sourcing, and simple ingredients. Nestle is committed to eliminating artificial flavors and Food and Drugs Administration certified colors from candy products. Mars, just as Hershey and Nestle, has developed a five year plan to identify natural flavors that do not only meet, but also satisfy taste criteria as it strives at eliminating artificial colors from its extensive product portfolio. With this in mind it is important to prepare a perceptual map for Hershey’s products in order to determine the company’s market share (Yu, 2017).
Hershey Company has 13 popular brands including: almond joy and mounds, York peppermint patties, payday, kitkat, Mr. goodbar, and krackel. Others include: the whatchamacallit, take 5, heath, skor, dagoba chocolate, 5th avenue, and zero bar (HCW, 2015). From a personal perspective, I prefer skor and goodbar because they are high quality products irrespective of their prices. Skor, for instance, is a unique product that is distinct from Hershey’s other candy line. In fact, Hershey’s Chocolate World (2015) indicates that the high quality as well as unique take of skor makes it’s a decidedly Hershey’s candy bar. Mr. Goodbar is one of the company’s pioneer products. – Hershey’s Chocolate World attributes its longevity to its pleasant simplicity which comprises of thick milk chocolate mixed with pieces of raw peanuts (2015). The product has a crunchy and creamy taste, which is the definition of a high quality candy bar. The product information may help the firm in determining how consumers perceive nutritional content of its products and in making necessary product readjustment in situations where Nestle and/or Mars have outshone the company with respect to nutritional value of its brands.
Figure 1: Perceptual Map for Hershey Company’s Candy Bars
High Price
Good bar Skor
York Peppermint Patties Almond Joy
Take 5 PayDay Krackel Heath
5th Avenue Kit Kat Dagoba
Whatchamacallit Zero Bar
Low Quality High
Low Price
The product information may also help in creating a perceptual map for the product (see figure 1). Hawkins and Mothersbaugh (2010) define a perceptual map as a diagrammatic technique used to display customer’s perception about an organization or products. Also known as positioning map, the perceptual map may play a key role in developing a marketing positioning strategy for Hershey and its products. The positioning product shows where the product is positioned in the market in order for the company to determine where it would prefer to position its products. The company has two options. It can either position Hershey Kiss so that it fills a market gap or it can compete against its competitors by positioning its products where its competitors have positioned their products.
Since Hershey Company can use the perceptual map to position its products in the market, it should strive to position York peppermint patties, take 5, payday, 5th avenue, and whatchamacallit at medium price, medium quality position in order to increase its market share. There are gaps in low price, low quality market and low price, high quality markets. However, no one would want to buy a low quality product, hence the company should not produce a low quality and low price product. Similarly, the high quality and low price quadrant is empty due to the fact that the company would find it difficult to produce high quality goods for cheap price. In essence, it would not make profits by selling high quality chocolate at low prices.
References
Hawkins, D. I., & Mothersbaugh, D. L. (2010). Consumer behavior: Building marketing strategy (11th ed.). Boston, MA: McGraw-Hill Irwin,.
Hershey’s Chocolate World. (2015). 13 candy bars you didn’t know are made by Hershey’s. Retrieved from
https://hersheyschocolateworldlasvegas.com/2015/01/13-candy-bars- didnt-know-made-hersheys/
Yu, D. (2017, September 24). Nestle, Hershey, Mars’ shift to clean snacking fuels US candy market rebound: Packaged facts. Confectionary News.Com. Retrieved from
https://www.confectionerynews.com/Article/2017/09/25/Nestle-Hershey-s-shift-to-clean- snacking-fuels-candy-market-rebound
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Hershey’s Company Perceptual Map
Student’s Name
Institution
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Hershey’s Company Perceptual Map
Student’s Name
Institution